One of the best things you can invest in and the most effective ways to protect your business from risks is to get business insurance.
Running a business comes with many different types of risks. Some of these potential hurdles can completely destroy a business, while others can cause costly and time-consuming damage to restore. Despite these risks involved in doing business, company owners and management teams can do their best to anticipate and prepare for any risks involved.
Continue reading to learn how to protect your business against serious risks below.
Identify Risks Involved to Protect Your Business
Some risks have the power and potential to destroy your business of any size, or at the very least, cause significant damage that is expensive to repair — so expensive that it could wipe out your entire business. Identifying which risks pose a serious threat to your operations is essential. These threats can include:
LOCATION RISKS — Location hazards that businesses face include neighboring fires, earthquakes, floods, storm damage, tornados, hurricanes, and other natural disasters. Employees need to be familiar with the nearby streets and keep sufficient fuel in the cars to drive away from the area.
PHYSICAL RISKS — Of physical risks, building risks are the most common type, such as fires or explosions. To help manage these risks, all organizations should do the following:
- Ensure all employees know your address to give to authorities in the event of an emergency.
- Make sure all exit locations are clearly marked and known by your staff.
- Install smoke detectors, fire alarms, and a sprinkler system.
- Let your employees know that personal safety takes priority over all else in an emergency.
Physical risks also include hazardous material risk is possible where hazardous spills, such as acid, toxic fumes, gas, and more, or accidents could happen. People who work with these materials need to be adequately equipped and trained to handle them safely and correctly.
TECHNOLOGY RISKS — Power outages are a common technology risk, but organizations can install gas-powered generators as a backup system, so business can continue as usual until power is restored.
PERSONNEL RISKS — Your employees can pose a major risk to your business. Those suffering from alcohol and drug abuse should be encouraged to seek treatment. Moreover, companies need to protect against embezzlement, fraud, and other white-collar crimes. Companies should always perform thorough background checks before hiring personnel to help avoid these types of problems. Illness and injury in the workplace could also be potentially problematic.
STRATEGIC RISKS — Not all strategic risks are bad. For example, banks take on strategic risks when they lend to their customers. When efficiently structured, these risks can be highly profitable for business. However, when the return on investment isn’t good or when risky ventures fail, it can cause significant problems.
Protect Your Business With Bear River Mutual Insurance
If you want to protect your business against these inherent risks, contact Bear River Mutual Insurance professionals. Our team of experts can help you find the best business insurance policy for your specific needs. Contact us to get a free quote today. We have three convenient locations in Northern Utah to serve you better: Salt Lake City, Provo, and Orem.